EVIEWS ANALYSIS : UNDERPRICING DETERMINANTS AND IMPLICATIONS ON LONG-TERM UNDERPERFORMANCE SHARES IPO ON INDONESIA STOCK EXCHANGE (BEI)

HAMILAH, STIE Y.A.I and MAKMURI, STIE Y.A.I and GUSMIARNI, STIE Y.A.I (2018) EVIEWS ANALYSIS : UNDERPRICING DETERMINANTS AND IMPLICATIONS ON LONG-TERM UNDERPERFORMANCE SHARES IPO ON INDONESIA STOCK EXCHANGE (BEI). Global and Stochastic Analysis, 5 (5). pp. 257-275. ISSN 2248-9444

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Abstract

This study aims to analyze factors that influence companies doingUnderpricing at the moment, companies conduct IPOs in the stock market and itsimplications on Long-Term Underperformance in proxy with JCI on IPO sharesin IDX. Analysis of phenomena. By using sample data onto IPO implementationfor years 2006 until IPO 2011 with period of 5 year for every implementation of IPO, method done by using Sampling Purposive Method.The first analysis based on the data onto companies conducting initial publicoffering (IPO) in BEI during the period 2006 to 2011, underpricing average by 83percent. The average initial return to companies underpricing during the IPOduring the period 2006 to 2011 average initial return to 31 percent, and thehighest in 2007 with Initial Return of 40 percent and the lowest occurred in 2011by 20 percent.The second analysis shows that the average of the age variable of company, thevalue of cavitation, the volatility effect on the level of underpricing in the companyconducting Initial Public Offering (IPO). While the Company Size Variable, InterestRate and Rupiah Exchange Rate are not significant.For the third analysis, the long-term performance of IHSG after firm IPO issignificantly influenced by the Companys Age variables, Capitalization Value,Volatility, Interest Rate, and Rupiah Exchange Rate, while the variables inCompany Size influence is not significant. This study reinforces the asymmetricinformation theory of underpricing phenomena, due to information asymmetrybetween underwriters and firms. Differences in information are supported by agencytheory and signal theory, whereby information published as an announcement willprovide a signal to investors in making investment decisions.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Dr Makmuri -
Date Deposited: 09 Mar 2020 07:06
Last Modified: 09 Mar 2020 07:06
URI: http://repository.stie-yai.ac.id/id/eprint/4

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